GIC posts profit of US$ 91 million for the year 2009
During the meeting held on 25th March 2010 in Kuwait, the General Assembly of Gulf Investment Corporation reviewed and approved the audited financial statements for the year 2009. Net income surged to US$ 91 million, representing a return of shareholders equity of 6.3%.
The Chairman of the Board Mr. Faisal Ali Al-Mansouri commended the solid recovery saying: “GIC emerged strongly from the financial turmoil of 2008, reaffirming its resilience and ability to rapidly adapt to changing environments. The corporation has been extremely successful in facing the challenges, delivering excellent results during a difficult year. The initiatives to mitigate risks, deleverage the balance sheet, optimize resource allocation and strengthen systems that were implemented have borne fruit, and the corporation is now well positioned to take advantage of the emerging opportunities”
Operating revenues increased multifold during 2009 to US$ 153 million, boosted by contributions from all core businesses. Shareholders equity rose to US$ 1.75 billion at the end of 2009, an increase of US$ 1.1 billion compared to the previous year. Approximately half of this increase, or US$ 537 million, resulted from valuation gains and retained earnings during 2009. With a capital adequacy ratio of 27%, GIC continues to be one of the most strongly capitalized financial institutions in the region. As of 31st December 2009, GIC’s total balance sheet stood at US$ 6.1 billion.
Commenting on the Corporation’s good performance, Mr Hisham A. Al Razzuqi, Chief Executive Officer, added “The robust performance, during a challenging phase, is testimony to GIC’s dynamism, proactive management and flexibility. GIC has significantly enhanced the quality of its balance sheet, reduced overall leverage and increased its capital base. We are now on a solid platform for continued profitability and growth. GIC continued to play a vital role in the principal investments business, despite several adverse conditions. As an example, the projects team successfully executed the Al Dur power project, achieving financial close in early 2009 – a period when liquidity was extremely tight. This reflects our standing in the region as a major promoter of private enterprise. We will continue to focus on the GCC region, while maintaining a healthy balance of international exposures across a diverse range of asset classes”.
Gulf Investment Corporation is a leading regional financial institution that was established under the auspices of the Gulf Cooperation Council and is equally owned by the six member states of the Council: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
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